"It is not something that inherently appeals to us [re-regulation]," Mr Featherston said of the recommendation on Sunday from the Thwaites inquiry
into retail energy prices in Victoria.

"We'd prefer the market to work properly rather than to be the subject of regulation but obviously if the market is not working and if competition
isn't delivering what we would expect it to deliver then re-regulation may be an option," he said ahead of a public ACCC hearing in Sydney on electricity
retail prices.

The comments come as RBC Capital Markets estimated that some $75 million could be carved from AGL Energy's gross earnings should Victoria follow through
on the recommendation from the Thwaites inquiry.

With AGL's two major rivals having a roughly similar market share, the overall impact could be roughly three times that, split between AGL, Origin
Energy and EnergyAustralia.

The Victorian government-appointed panel led by Professor John Thwaites found the promised benefits from competition have not been realised "and consumers
are paying more for the same service".

It found the average retail charge for a typical customer in the state using 4000 kilowatt-hours a year is now $423 before GST, about 30 per cent of
the household bill. For most customers the retail cost is bigger than the charge for producing of distributing electricity.

The Victorian government is now considering the panel's recommendations and is expected to respond by November.

The inquiry panel highlighted the market power of the "Big 3", and noted they are charging customers "towards the top of the price range.".

"The Tier 1 retailers do not appear to have been put under competitive pressure by the smaller retailers to lower their prices," it said.

At the same time, Victoria has the highest level of electricity customer churn - 26 per cent in 2015-16 - of any state, which normally indicates a
competitive market.

AGL said it is still reviewing the report's recommendations, but said it viewed the Victorian market as "highly competitive".

Mr Featherston said the ACCC had also received reports during its inquiry of "fairly high" electricity retailing margins in both Victoria and NSW and
that consumers "just aren't finding the best offers in the market, even from their existing supplier".

The ACCC is also examining whether the high concentration of retailers and the high level of vertical integration between generators and retailers
are contributing to the problem. In NSW, for example, the "Big 3" still control about 90 per cent of the retail market.